Transcript Europe`s non-ferrous metals industry

Trade in minerals originating in conflict-affected
and high risk areas
INTA COMMITTEE HEARING
04.12.2014
Mr Guy Thiran, Director General,
EUROMETAUX
1
About Eurometaux
Eurometaux is composed of a wide network of companies producing, transforming and
recycling non-ferrous metals in Europe. Our membership also includes national
federations, and European and International commodity associations.
Europe’s non-ferrous metals industry
€120bn
Annual turnover
52%
500,000
Direct employees
Of pure base metals
come from recycled
sources
3 million
Indirect employees
13%
Of earth’s crust is made
up of non-ferrous
metals
2
About Eurometaux
Eurometaux is composed of a wide network of companies producing, transforming and recycling
non-ferrous metals in Europe. Our membership also includes national federations, and European
and International commodity associations.
Europe’s non-ferrous metals industry
€120bn
3 million
500,000
Annual turnover
Direct employees
Indirect employees
52%
13%
Of pure base metals
come from recycled
sources
Of earth’s crust is made
up of non-ferrous metals
3
The EU Initiative should focus on improving
the situation on the ground
• Eurometaux supports EU objective of moving towards increased transparency
in the trade of certain minerals originating in conflict areas.
• European Commission and EEAS Joint Communication:
“Any trade-related EU action in this area needs to be placed
in this broader context and complement the EU’s foreign
policy and development cooperation initiatives”
• Eurometaux urges EU authorities to develop a set of concrete measures to
break the link between minerals extraction and conflict
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Existing voluntary initiatives should be the
basis for EU’s regulation
• Eurometaux member companies are operating in line with OECD Due
Diligence Guidelines for Responsible Supply Chain of Minerals.
• 3T+G smelters (Tin, Tungsten, Tantalum and Gold) are actively involved
in a number of responsible supply chain initiatives and auditing
programmes.
 ITRI Tin Supply Chain Initiative
 Supply Chain Initiative of CFSI of EICC/GeSI
 London Bullion Market Association (LBMA), Responsible
Jewellery Council
 Tungsten Industry Conflict Mineral Commitment, or TI-CMC
5
Success of ITRI Tin Supply Chain Initiative
99% coverage by iTSCi in first half 2014 is reached both by comparison with official
exports from the region, and with reported imports by iTSCi.
6
Need for a global playing field
• Solving the problem requires involvement of other regions, not just EU and
US.
• Without equivalent global commitments, the competitiveness of EU
companies will be undermined, as only 5% out of global 3T smelters and
gold refiners are located in the EU (Commission’s Impact Assessment,
2014).
Need for full supply chain commitment
• Without the commitment of downstream sector:
 Higher EU dependency on imports from third countries, less valueadded activities within the EU.
 Failure to fully secure the supply chain for specified minerals,
undermining objective of EU proposal
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Eurometaux recommendations
• Exclude secondary raw materials from the Regulation scope
• Ensure major criteria are in line with already existing regulatory frameworks
and practices
• Provide mutual recognition with already existing practices, including OECD
Due Diligence Guidance, US Dodd-Frank Act Regulation, voluntary initiatives
• Create a single European authority to control compliance with the
Regulation
• Provide further clarification on third-party audits
• Address issue of commercially sensitive/confidential information
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Thank you for your attention